Bad Credit Car Loans
It’s estimated that more than 25% of Americans have poor credit records, and as the numbers grow, the specialty financing market grows as new credit products are created to assist people in getting the things they need or want.
Bad credit car loans are no exception, and if you do have poor credit but need a car, you still might be in luck. Many used car dealers specialize in helping those with poor or no credit in obtaining financing for cars. There are some advantages and disadvantages to applying for and obtaining a bad credit car loan.
A major advantage is that those who specialize in offering financing to those with a challenged credit record can offer more flexibility and work with you than the average bank. They may also provide terms which include up to 7 years to repay the loan. However, most bad credit car loans do require repayment of the full amount of the loan within 48 months.
Thousands of bad credit car loan applications are processed each day in North America, so if you do know you will need to go this route to purchase a vehicle, you can be assured that you are not alone. At the same time, it’s best to shop around like anything else, for the best terms that you can get.
Keep in mind that you might have to come up with a larger down payment on the vehicle you plan to purchase if you have bad a poor credit record.
Used car dealerships that specialize in assisting with bad credit car loans will often have higher prices on their vehicles. With this knowledge, you may be able to negotiate a better price for the vehicle before applying for the loan.
Check out the interest rate offered and ask for a complete disclosure of all the costs of the loan. You’d be amazed at how much a loan is going to cost you in the end, above the loan amount.
Don’t take credit for granted, ever. Remember, if you are offered a bad credit car loan, this could be your chance to improve your credit score in the future. On the other hand, if you are not responsible, your future credit chances will diminish or be eliminated all together.
Some things you can do ahead of time:
1. Get a copy of your credit record. Jurisdictions in North America require that you be able to review what is on your credit record and file any disputes that you may have.
2. Prepare your documents ahead of time. If you know you will be applying for a bad credit car loan, make sure you have your proof of employment and pay stubs. This will save you time when applying for the loan.
3. Be very jealous of your credit record! Make every effort to make at the minimum payments at the very least each and every month on every loan and payment that you have.
Tags: auto loans, bad credit, car loans, credit check